Fresenius Kabi, a 100% subsidiary of German healthcare group Fresenius, which completed the acquisition process of Dabur Pharma on Monday, plans to invest approximately Rs 190 crore over the next two to three years in the active pharmaceutical ingredient (API) plant of the company. Rainer Baule, president and chief executive of Fresenius Kabi stated this here on Tuesday. Fraesenius Kabi also plans to double the capacity of the plant, added Baule.
The API plant of Dabur Pharma is located in Kalyani, West Bengal.
Fresenius Kabi acquired 90% in the domestic drug maker in April and followed it up with a public offer in July. The acquisition significantly secures Fresenius’s supply of high quality APIs for cytostatics.
To expand Dabur’s business, Fresenius will work to seek necessary approvals from Food and Drug Administration for the domestic pharma company’s newly commissioned formulation unit in Himachal Pradesh, Baule said. The plant has already got approvals from Europe.
Fresenius has already replaced seven members of the board. Satish Kulkarni has replaced Ajay Vij as the chief executive officer of Dabur Pharma. Baule said: “India is an extremely important market for us as it is one of the fastest growing markets in the world”. Fresenius will have to offload at least 1% of its stake in Dabur Pharma to meet the Sebi guidelines.
